Gujarat Government launches Suryashakti Kisan Yojana

Gujarat government has launched Suryashakti Kisan Yojana (SKY), solar power scheme for farmers enabling them to generate electricity for their captive consumption as well as sell surplus power to grid and earn extra buck. It is claimed to be first such scheme in the country, where farmer will produce his power and sell surplus to State power utility.
The pilot project of the scheme will kickoff from July 2018 and about 137 feeders will be set up. It will cover as many as 12,400 farmers from 33 districts. The project cost is around Rs 870 crore and it will generate 175 MW.

Suryashakti Kisan Yojana (SKY)

The scheme aims at empowering farmers of state to generate their own electricity using solar energy and help doubling their income. Under it, farmers of state having existing electricity connection will be given solar panels as per their load requirements. It envisages setting up of separate feeders for agricultural solar energy consumption.
Cost Sharing: The State and Central governments will give 60% subsidy on cost of project. The farmer is required to take 5% cost, while 35% will be provided to him as affordable loan with interest rates of 4.5 to 6%.
Duration of scheme: It is 25 years, which is split between 7-year period and 18-year period. For first 7 years, farmers will get per unit rate of Rs 7 (Rs 3.5 by state power utility + Rs 3.5 by state government). For the subsequent 18 years they will get rate of Rs 3.5 for each unit sold.

Month: Current Affairs - June, 2018